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Gabriele Guidoni

ABS Analyst


Bi-weekly private credit digest – market news & updates from April 2023

In this April episode of the bi-Weekly, we will walk you through the latest and most interesting news from the private credit market in Italy, US, and more. Read along to learn more.

Asset Tokenization: From NPL to Real Estate

The Azimut Group has tokenized a portion of a Luxembourg-based fund, focused on a diversified portfolio of asset-backed securities (ABS), including non-performing loans. The operation was carried out in collaboration with Allfunds Blockchain which, through the usage of smart contracts, allows the parties to track all related operations in real-time, increasing transparency and effectiveness

This operation represents another step in the world of decentralized finance for Azimut, which in 2021 was the first asset manager to launch a security token linked to a portfolio of loans to small and medium-sized enterprises. 

The objective of this new initiative is to evaluate the efficiency of Distributed Ledger Technology (DLT) in processing important operations within the investment cycle of funds. The model aims to facilitate the transfer process of shares among investors in Azimut funds within the blockchain ecosystem offered by Allfunds Blockchain.

Real Estate Securitization Tokenization

Phinance Partners, is developing a pilot project to tokenize a real estate securitization through the blockchain platform of BlockInvest to offer investors access to new instruments in the form of tokens that incorporate all available information on the already securitized assets and the entire documentation set of the operation. 

BlockInvest is a platform that allows for tokenization of assets through blockchain technology, developed by RealHouse srl, a Milan-based fintech startup. Through the platform, in 2021, the Servicer Sorec purchased its first tokenized NPL portfolio, with a gross value of 12 million euros.

The increasing interests in applying blockchain solutions in structured finance, might be linked to the ability of such solutions to:

  • Increase transactions’ transparency, by providing a transparent and immutable record of transactions and ownership, reducing the risk of fraud;
  • Increase transactions’ efficiency, by automatizing, through the usage of smart contracts, many of the manual processes involved in structured finance transactions, such as the verification of ownership and the processing of payments, which can lead to cost savings and faster transaction times.
  • Increase assets’ liquidity.

The topic of asset tokenization is particularly hot these days in Italy, just as the Senate is examining the text of the conversion law for the so-called Fintech Decree, that will concern the Issuance and Circulation of Certain Financial Instruments in Digital Form.

SME Finance Deal with Fasanara Capital

SME Finance, a Lithuanian lender to small businesses, has secured a new €100m credit facility from Fasanara Capital, taking the total credit line extended to SME Finance by Fasanara to €240m. The new credit will be used to launch an EU-wide fintech marketplace that will offer traditional business loans and alternative forms of lending, such as revenue-based financing and embedded finance.

SME Finance has already provided more than €1.3bn of loans and invoice financing using machine learning and open banking.

New Syndicated Loan Trading Platform for the US Market

Octaura Holdings, an industry-leading provider of electronic trading, data, and analytics solutions for syndicated loans, has launched a new syndicated loan trading venue that delivers trading protocols, real-time data and analytics on a single platform, providing market participants with access to multiple protocols essential to trading efficiently and with increased confidence.

The platform has the backing of seven of the US syndicated loan market’s leading dealers, has nine dealers and over 90 asset managers actively trading or onboarding, and will now move forward with developing trading solutions for additional asset classes.

Thank you for reading and don’t forget to visit the Cardo AI blog to read all the latest news and insights on the private credit market, or subscribe to our podcast for on-the-go updates!